New Evidence Of Chinese Spy Hardware Found By Ex-Mossad Investigators; Super Micro Shares Plunge

Tuesday, October 9, 2018
By Paul Martin

by Tyler Durden
Tue, 10/09/2018

A major US telecommunications company found “manipulated” hardware from Super Micro Computer Inc. in its network in August – bolstering claims in a Bloomberg report last week alleging that China installed bugging devices on hardware bought by Apple, Amazon and a host of other companies.

According to a new report by Bloomberg, the unnamed telecom company hired former Israeli Intelligence Corps security expert Yossi Appleboum, now of Maryland-based Sepio Systems, who provided “documents, analysis and other evidence of the discovery” following last week’s report detailing how China’s intelligence agencies had ordered subcontractors to install malicious chips in Super Micro motherboards between 2013 and 2015.

Sepio Systems’ board includes former Mossad director, Tamir Pardo, and its advisory board includes former CIA chief information security officer Robert Bigman.

Israeli Army Intelligence Corps and is now co-chief executive officer of Sepio Systems in Gaithersburg, Maryland. His firm specializes in hardware security and was hired to scan several large data centers belonging to the telecommunications company.

Bloomberg is not identifying the company due to Appleboum’s nondisclosure agreement with the client. Unusual communications from a Supermicro server and a subsequent physical inspection revealed an implant built into the server’s Ethernet connector, a component that’s used to attach network cables to the computer, Appleboum said. -Bloomberg

Appleboum says that Super micro “is a victim — so is everyone else,” and that he has seen “similar manipulations of different vendors’ computer hardware made by contractors in China,” according to Bloomberg. He adds that his concern is that there are numerous points in the supply chain in China where hardware can be manipulated – which are virtually impossible to track down. “That’s the problem with the Chinese supply chain,” said Appleboum.

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